Booking Stock Eyes Elliott Wave Support Near $1000
EWM Interactive | Apr 08, 2020 08:07AM ET
Social distancing measures in response to the Elliott Wave chart below.
Booking was clearly in an uptrend prior to March 2018 when it hit a record high of $2228. Therefore, the following weakness must be some kind of a three-wave retracement. Judging from the chart above, it is a regular A-B-C flat correction .
Wave A is a (w)-(x)-(y) double zigzag, while wave B is a simple (a)-(b)-(c) zigzag. Wave (c) of B is an expanding impulse in wave C. So far, we can see waves 1, 2, 3 and 4, which means wave 5 remains.
Wave 4 reached the 38.2% Fibonacci level yesterday, where fourth waves usually terminate. If this count is correct, the bears should be able to drag Booking stock to roughly $1000 a share in wave 5 of C. A major bullish reversal should then be expected in that area.
It will take some time for Booking and the travel industry as a whole to recover. However, long-term investors should take advantage near the point of maximum pessimism. Waiting for things to improve first would inevitably mean paying a higher price.
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